The British Business Bank has provided the 75,000th funding deal under its Start Up Loans (SUL) programme, which has now invested £623m since being launched in 2012.
The British Business Bank is the economic development bank of the 海角视频 Government with a 海角视频-wide lending remit, which as well as loans also includes equity.
Its SUL programme provides up to £25,000 in debt to new businesses at an interest rate of 6%, providing vital finance in a marketplace where many banks don't operate.
SUL saw a significant rise in loans issued since the start of the pandemic in the 海角视频. May to July 2020 saw a total of £31.9m of funding drawn down, compared to £22.9m in the same period the previous year, an increase of more than 39%. July 2020 has been the record month for drawdowns since 2014, as restrictions eased and businesses started to re-open their doors to customers.
Of the people who received a loan since 2012, two fifths (40%) were women. One in five (20%) of recipients came from black, Asian and minority ethnic communities (BAME), of which 48% were from black ethnic groups, 23% from Asian ethnic and 29% from mixed ethnic groups. One third (33%) were unemployed when they applied for the loan, reflecting the diversity of the 海角视频 start up community.
SUL has lent money and provided mentoring support to aspiring business owners in every nation and region of the United Kingdom and its impact has been particularly noticeable in areas of deprivation.
The North West received the highest number of loans outside of London with a volume of 9,219 (12%) worth £74m since 2012. The South East received 6,752 loans (9%) worth £60m, followed by the West Midlands where a total of 6,198 loans (8%) were provided for a value of £50m.
Some 3,443 (5%) have been issued to entrepreneurs in Wales, meaning £32.2m has been invested since 2012.
| 海角视频 Region | Loans Made | Amount Lent (£) | Average Loan Amount (£) |
| East Midlands | 4,125 | 31,993,970 | 7,756 |
| East of England | 4,988 | 41,066,875 | 8,233 |
| Isle of Man | 2 | 10,000 | 5,000 |
| London | 16,508 | 137,001,751 | 8,299 |
| North East | 4,295 | 35,344,418 | 8,229 |
| North West | 9,219 | 74,692,327 | 8,102 |
| Northern Ireland | 1,157 | 8,900,426 | 7,693 |
| Scotland | 4,703 | 36,734,508 | 7,811 |
| South East | 6,752 | 60,396,668 | 8,945 |
| South West | 6,214 | 50,827,370 | 8,179 |
| Wales | 3,443 | 32,226,155 | 9,360 |
| West Midlands | 6,198 | 50,087,079 | 8,081 |
| Yorkshire and The Humber | 6,332 | 54,868,989 | 8,665 |
| Region not obtained | 801 | 9,606,463 | 11,993 |
| Grand Total | 74,737 | 623,756,999 | 8,346 |
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Figures as of the end of July not August when loans reached 75,000.
The 75,000th SUL recipient was Helen Conway, from Blackwood in South Wales. Ms Conway, a former chief executive of Cardiff Chamber of Commerce, took out a loan of £25,000 this month (August) to pay for the equipment and premises to open a new bakery.
In March 2020 as the 海角视频 went into lockdown, Ms Conway alongside her daughter, Angharad, and son-in-law Lance, launched an online bakery delivery service, Ty Melin Bakery (Mill House).
Between April and August 2020, the trio has generated a turnover of over £30,000, despite having to limit the number of items baked per day due to lack of space.
Ms Conway said: “The three of us have been discussing the possibility of starting a family venture for several years and we drafted our initial business plan over two and a half years ago.
“Lockdown gave us the perfect opportunity to launch, as the nation became increasingly reliant on delivery services to help make their time at home more bearable.
“When our online shop opens at 9am on Saturday we usually sell out by 10am. We also introduced national delivery for one of our most popular products, the Croissant Bomb, and they sold out within 90 seconds.
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“We are delighted to have taken out our loan and the advice and guidance we received from Start Up Loans, through our loan provider, Business In Focus, was spot on.”
Richard Bearman, managing director of SUL, said: “Start Up Loans’ 75,000 draw down represents a major milestone for our operations, meeting a key policy objective from when we launched in 2012. The 海角视频 Government backed finance for people looking to start their own businesses has never been more important than it is currently.
"As well as being key to economic growth over the long term, government support for small businesses around the 海角视频 continues to drive investment into the nations and regions.”
Secretary of State for Wales Simon Hart said:
“Start Up Loans have been a crucial avenue of support for Welsh entrepreneurs for many years before and during the coronavirus pandemic, helping to deliver a stronger economy which fosters innovation.
“This week’s milestone loan to a fantastic Welsh business reflects the 海角视频 Government’s commitment to support every nation and region of the 海角视频, providing communities in Wales with the resources they need to thrive.”
Business Secretary Alok Sharma said: “The Start Up Loans programme was set up by the government-owned British Business Bank to give funding and support to entrepreneurs who might otherwise struggle to access it, making a real difference to tens of thousands of entrepreneurs across the country.
“As these figures show, we are committed to levelling up across all nations and sectors of the 海角视频 economy by backing makers, doers and innovators like Helen Conway as we build back better. Her Ty Melin bakery service exemplifies the kind of aspirational, exciting new business that the 海角视频 government wants to support to drive economic growth in Wales.”
"As well as finance, every loan recipient is offered a support package, including access to a free expert business mentor for 12 months to help them with every aspect of setting up a business."
The British Business Bank is also currently administering for the 海角视频 Treasury the various coronavirus loan schemes, which have more than 100 accredited lenders.